Increasing Visibility with Real- Time Data · 2020. 1. 24. · logipharmaeu.wbresearch.com Increasing Visibility with Real-Time Data “If you want to meet your peers in supply chain,

logipharmaeu.wbresearch.com

Increasing Visibility with Real-Time Data

Increasing Visibility with Real- Time Data

https://logipharmaeu.wbresearch.com/



“If you want to meet your peers in supply chain, LogiPharma is the place do it! It’s the best networking opportunity out there.”

– Clemens TwardyVP Supply Chain Management

Boehringer Ingelheim




ContentsIntroduction

Recommendations on Implementing a Real-Time Monitoring Solution with Tommy Jennings, Associate Director at Allergan Pharmaceuticals in Ireland

A Glimpse into the Future of Pharma Logistics: Niclas Ohlsson, CEO, TSS

Part One: The Evolving Digital Landscape

Part Two: Increasing Visibility

Part Three: Utilising Real-Time Data

About Controlant

About TSS

About WBR Insights




IntroductionThe logistics industry now has more data on shipments than ever before. With this mountain of new data comes the responsibility for pharmaceutical companies to figure out how best to implement a proactive model so that they can act on data in real-time.

In Q4 of 2018 WBR Insights, Controlant and TSS surveyed 100 Heads of Operations from pharma companies across Europe to find out more about the challenges they’re facing and the innovative solutions being brought to the table.

The survey was conducted by appointments over the telephone. The results were compiled and anonymised by WBR Insights and are presented here with analysis and commentary from Controlant, TSS and the LogiPharma community.

LogiPharma is the longest running supply chain event, now in its 19th year of bringing together supply chain professionals from the pharma industry. Download the agenda to find out more.

ContributorsAnn L. Merchant Vice President Life Cycle Team Head MorphoSys AG

Gisli Herjólfsson CEO Controlant

Niclas Ohlsson CEO TSS


https://logipharmaeu.wbresearch.com/agenda-mc



Tommy has been leading Allergan’s implementation of Controlant’s real-time cold chain monitoring solution. Q: What are the added benefits of using a real-time solution? A: Having on-demand visibility of shipments enhances compliance, patient safety, data, and analysis. We now also have almost total visibility and there are almost no blind spots. With a standard USB logger, assumptions must always be made.

The device is great, but what every company is looking for is the data. It helps you make quick decisions, for example which route to take and which airports to avoid. It also helps us identify areas for improvement in our temperature controlled supply chain and ultimately reduces risks. When using other devices, retrieving data is always onerous. For example, if you have a regulatory audit and need to provide data, it might be with QA on the other side of the world. Now myself and other stakeholders have access to all shipment data at our fingertips.

Q: What advice can you provide to other companies considering a real-time solution about getting buy-in from stakeholders? A: Talk to companies who are already using and implementing the considered solutions and who are further along this journey than you are. We looked at many providers and spoke with our colleagues in the industry. We asked them how far they were on the journey and what to watch out for. It’s important to bring your stakeholders to as many meetings as possible, so they hear it directly. We involved commercial and manufacturing site QA from the beginning. We also encouraged an open dialogue and didn’t prevent anyone from talking to Controlant during that phase or the trial phase. In the end, the decision was made by the stakeholders

themselves and I had them coming to me saying they wanted this solution.

Q: How have you been implementing the solution? A: It has been a phased roll-out starting from manufacturing sites to one receiving region at a time. We are deliberately rolling this out slowly by breaking it into manageable pieces.

Q: How closely have you been working with the solution provider’s team? A: It has been a massive collaboration. I have been leading the project and have been working very closely with Controlant’s team on the roll-out. All sites and stakeholders are invited to join weekly calls to discuss their challenges. We brought Controlant in early, told them everything they needed to know, and introduced them to key stakeholders to promote direct communication.

Controlant is also very agile and are very quick to do their best to make certain solutions a reality.

Q: Do you have any success stories to share? A: The largest saved load happened during the trial phase with a product launch shipment going to China. Our own internal project team was tracking this shipment and were able to see it going out of range. We only experienced a minor excursion and were able to save products worth approximately $50 million.

Final thoughtsChange is difficult and moving away from the tried and trusted is always tough. We’re dealing with pharmaceuticals that save or enhance people’s lives. It has to be done in a measured approach, and this was it for us.

Recommendations on implementing a real-time monitoring solution throughout the global pharmaceutical supply chain with Tommy Jennings, Associate Director at Allergan Pharmaceuticals in Ireland




Technology has always been a great source of energy and creativity. Deployed and utilised in the life science industry, tech has added new dimensions and transformed our work in ways we couldn’t have foreseen. To be able to thrive, one needs to both understand the capabilities and limitations of a given technology – not only from a technical perspective, but in the wider context of your operations.

“To be able to thrive, one needs to both understand the capabilities and limitations of a given technology.”

More than 10 years ago, TSS ceased its efforts to develop RFID solutions, while others continued the investment. We decided to abandon RIFID because we found no answer to an integral question: who would provide the reader infrastructure, and how would they operate multiple bandwidths for cross-continental shipments? Today, we focus our efforts on the promising capabilities of technology like AI and blockchain, both of which support a host of innovative projects.

TSS is considering several aspects within blockchain: how can we bridge the gap between the digital and physical world and build a trusted blockchain in the supply chain. At the same time, our AI research is exploring how chatbots can be trained to identify the best supply chain design, by modelling environmental factors, routing, service

providers, modes of transport, packaging and seasonal variables. Our aim is to harness data from millions of shipments which can be categorised and used as the trainer for a powerful AI, highly attuned to the potential for specific challenges within pharma logistics.

Interesting discussions arise when considering how to recognise and to handle bad data. Our supply chain knowledge changes over time, along with operational contexts, and historical data rapidly becomes obsolete, disqualifying the models built on it. LogiPharma is an essential arena, bringing together supply chain experts with technology and solution providers. This enables in-depth discussions on which challenges we need to address, and what merits potential emerging technologies need to resolve those problems.

“These are really exciting times - we have the opportunity to reshape the challenges we face, and the technology we use to overcome them.”

As technology continues to develop, industries are starting to narrow down the list of business problems it can solve. These are really exciting times - we have the opportunity to reshape the challenges we face, and the technology we use to overcome them.

A Glimpse into the Future of Pharma Logistics: Niclas Ohlsson, CEO, TSS




Part One:

The Evolving Digital Landscape




The majority of respondents are keen to leverage their supply chain data to implement predictive analytics

What would you like to achieve with your supply chain data?

Data has always been available in large quantities throughout the supply chain. With the advent of predictive analytics, this data can now be turned into information about where the product is, where it needs to be, and what state it is in, which will allow us to drive better decisions. Predictive analytics will improve scenario planning from a risk perspective and from a business contingency perspective.

– Ann L. Merchant Vice President Life Cycle Team Head

MorphoSys AG

Quality of data is key for any predictive analysis and it brings greater value. It allows us to be proactive and avoid incidents; our success rests on our ability to capture and model the underlying causes of incidents – this allows us greater control. If a model does not build on these fundamental elements, then risk becomes inevitable and dilutes the model’s value.

– Dr. Niclas Ohlsson CEO TSS

Predictive analytics 51%

End-to-end visibility 43%

Ability to save more products 41%

Complete overview of all 40% shipping lanes

Expedition of the release process 38% for our products

Trend analysis 38%

Optimisation of shipping lanes and routes 31%

Validation of our shipping lanes and/ 15% or packing materials

Respondents were asked to select all that apply




35% of respondents are actively discussing utilising the Internet of Things, and 35% are currently in the process of implementing it, while 19% have already done so

Is your company implementing these technological innovations?

IoT would be more beneficial for the patient, if it enabled comprehensive communication of a patient’s treatment and wellbeing for all HCPs, and potentially even care-givers, replacing the disjointed medical records of today.


MorphoSys AG

Emerging technologies are rapidly changing industries across the globe. In some ways I am surprised at how responsive the life sciences industry has been; especially given its historically conservative reputation.

Exploration leads to greater opportunity, and it will be interesting to monitor the future of these technologies.


Supply chain

data analytics

Customer data

analytics

Advanced data

analytics

Cloud computing/

big data

Machine learning

Artificial intelligence

Mobile apps for patients

& care professionals

3D printing

Blockchain

technology

Industry 4.0 and

the Internet of

Things

3%5% 5% 5%

16%

9%

20%

11%

17%

6%

1%1%1%

6%

18%

29%

22%24%

33%

28%

32%

35%

18%

28%

35%

30%

39% 39%

22%

38%

26%

35%33%

63%

42%

36%

32%29%

24%22%

19%

26%

37%

It’s already working for us

We’re in the process of implementing it

We’re actively discussing it

Maybe in future, but not now

No plans to implement




The majority of Heads of Operations surveyed would consider using machine learning for safety stock management and demand planning

What would you consider using machine learning for?

Safety stock management 61%

Demand planning 57%

Inventory management 44%

Promotion management 32%


For established drugs there is a significant amount of data that could be used for safety stock models. With a new product portfolio however, there may be less qualitative data to build such model. As with demand planning, we still have to make sure that we build models on the true drivers.





Respondents are most likely to select channel inventory as the most significant element of demand prediction

Which of the following factors has the most significant impact on demand prediction?

yChannel inventory 39%yHistory 29%ySocial sentiments 19%yPOS sales 8%yPatient behavior 5%

39%

29%

19%

8%5%The fact that channel inventory data is the key influencing

factor for predicting demands suggests that traditional statistical techniques could be more effective than machine learning.





Respondents were asked, ‘What effect has Brexit had upon your European supply chain strategy?’Here’s what they had to say…

We can now achieve a wider supply chain as the concentration of dominant pharma companies in the UK will move out to the

European market.

The immediate effect that the supply chain will face is

stockpiling. Suppliers across the UK and Europe will find it difficult to circulate products

between each other due to increased regulations. To avoid

this situation, companies and suppliers will accumulate

supplies to retain their market.

Third party logistics providers will have to

change their routes and we will have to pay

additional freight charges for products being

delivered to the UK.

The effect on strategies has been that of realignment. The supply chain now has to get used to regulations from EMA, which will no longer be situated in the UK, but will be shifted to

Amsterdam.

Brexit will create a good opening to companies within Europe. For our

supply chain it has created an opportunity to supply

medicines in the European market with less fear of UK

suppliers.

EU reference countries are finding it difficult to procure

pharma products from the UK, whereas companies

like us are finding it considerably easier to

source these products that are now in demand.




Part Two:

Increasing Visibility




The biggest challenges for Heads of Operations surveyed are improving traceability, and managing the supply chain for a changeable portfolio

Which are the biggest challenges for you in your role currently?

Managing the supply chain for a 56% rapidly changing portfolio

Improving quality and traceability 56% across your entire network

Increasing forecast accuracy 43%

Innovating the distribution channel 42% strategy to remain competitive

Balancing cost management versus 42% providing excellent customer service

Managing the supply chain following 40% a merger or acquisition

Increasing performance of new 39% product introductions

Improving end to end visibility of 25% supply chain


Traceability is a key challenge for more than half of respondents. If you can achieve real end-to-end visibility, you will be able to drive quality improvement and traceability in the supply chain.





52% of respondents have implemented direct-to-patient distribution, and a further 44% have plans to do so in the next three years

How far along is your company in implementing direct-to-patient distribution channels?

yWe will be implementing it in 44% the next 1-3 years

yFully operational – we have been 36% distributing by direct-to-patient channels for over a year

yDeployed – we started 16% distribution in the last 12 months

yWe are actively discussing it but 4% there are no plans to implement just yet

yWe won’t be implementing this 0%

44%

36%

16%

4%With direct-to-patient distribution increasing, it will become more and more critical to implement tools to monitor these channels in order to ensure quality and patient safety.

– Gisli Herjólfsson CEO

Controlant

With one third having more than a year’s operational experience, and the rest moving rapidly in that direction, I look forward to LogiPharma 2019 arranging seminars with case studies and panel discussions around the lessons learned.





Only 3% of Heads of Operations are unprepared for the global serialisation requirements

How prepared is your company for the global serialisation requirements outlined in the EU Falsified Medicines Directive?

yVery prepared, we have all of our 49% processes and technologies in place

ySomewhat prepared, but we are 48% still developing our processes and technologies

yNot very prepared, it would be good 3% to find out how other companies are managing this

49%48%

3%Having attended a number of conferences, it sounds like many will be well prepared. It will be interesting to hear about unforeseen challenges at LogiPharma, and how products manufactured before February 2019 with unregistered barcodes are handled. I hope to learn more on how serialisation can provide other benefits to the supply chain, and how we can use item level tracking to support other initiatives.





When it comes to meeting GDP guidelines, reassessing the strategy for freight is the top investment priority for 1/3 of Heads of Operations surveyed

What do you think the number one investment priority for meeting GDP guidelines should be?

Reassessing and changing strategy 32% for freight – sea vs. air. vs. truck vs. rail

Consolidating or finding new 26% transportation service providers

Investing in active solutions 21%

Risk assessing and adapting 15% transportation routes

Investing in passive solutions 6%

The objective with GDP is to ensure that the quality and integrity of medicines are maintained throughout the supply chain. This refers to several underlying factors such as contamination, stock turnover, and timeliness.

Emerging product portfolios with new characteristics pertaining to quality, time, value and volumes will most likely require increased diversity in the supply chain design. It would be interesting to explore initiatives where pharma companies incorporate the design of their supply chain into the product R&D process.





The number one priority when executing end-to-end supply chain visibility is building better relationships with customers

What are your key priorities when implementing end-to-end supply chain visibility?

The benefit of visibility from the supplier to the customer is a balancing of demand, with the ultimate aim to remove any whipsaw effects in the end-to-end supply chain. A balanced demand view results in more efficiency and more predictability.


MorphoSys AG

Building better relationships with 58% customers

Being more responsive to supply 54% changes

Building better relationships with 54% suppliers

Being more responsive to demand 52% changes

Improving quality and traceability 49%

Better managing CMOs 49%

Enabling control tower-type 36% capabilities


It would be very valuable to explore how the Internet of Things could support customer relations by offering more transparency for both parties.





Part Three:

Utilising Real-Time Data




54% of respondents overspend on maintaining temperature in more than a quarter of shipments, while just 24% of Heads of Operations surveyed feel they are underspending on over a quarter of their shipments’ temperature

maintenance requirements

Overspend Underspend

On one hand, it is positive to see that the industry is overspending rather than underspending when it comes to quality risks and patient safety. On the other hand, having reliable data will help make better decisions on optimising cost without risking patient safety, which is ultimately the best choice for both the industry and consumers.


Controlant

We have customer examples where adopting the right level of packaging not only saved expenditure on packaging, but also significantly reduced the percentage of man-hours. Customers also saw a major decrease in transport costs, in tonnes of C02, and in tonnes of package waste. This was achieved while maintaining the quality and integrity of the products.


Less 10% of all shipments

10-25% 25-50% 50-75% More than 75% of shipments

Don’t know

8%

26%

50%

22%

2% 0%

38%42%

11%

1% 0% 0%

How often do you overspend or underspend on maintaining the neccessary temperature for your shipments? (i.e. using too many or not enough packing, containers, blankets and services)




Below 50 1%

50-59 17%

60-69 39%

70-79 28%

80-89 9%

90+ 6%

82% of respondents have the correct data to determine over or underspending for 60 or more of their shipments

For how many of your shipments do you have all the data required to answer the questions above?

It is interesting to see how the industry’s perception of real-time data has changed over the last two years. Now, almost 50% of professionals believe that real-time data is very important. We are certainly experiencing more interest from the industry to adopt real-time solutions, not only for a part of companies’ supply chain, but as the standard solution for the entire supply chain. The technology has improved a lot and has reached a point where scalability and cost are no longer an issue.


Controlant

Designing a sustainable supply chain, which capitalises on data requires a proactive organisation. Using predictive models, we can change elements of the configuration, (such as the type of packaging used,) to find the most efficient delivery for a shipment.

For some shipments, closer real-time monitoring and in-transit control solutions are a smarter choice – for example, when delivery time is essential to the quality and integrity of the product. In general, however, proactive models are more cost effective than reactive models.





Somewhat important

Very important

Not very important

Not important

at all

Only 4% report that access to real-time data is unimportant

How important is access to real-time data for your company’s supply chain management strategy?

With a ‘control tower’ approach to monitoring and response services, the industry can truly benefit from real-time data and prevent issues from escalating. Increased collaboration between solution providers and logistics companies has truly taken the benefit of real-time data to the next level. It is now possible to keep an eye on your supply chain 24/7, worldwide, without having to build up internal monitoring teams.


Controlant

I would suggest being cautious when building a supply chain that rests on real-time data, as it may give way to a reactive rather than a proactive organisation. The costs and capacity for intervening with shipments could easily become an issue.

A governance process should be developed prior to deployment, mapping all scenarios. The process should cover the full supply chain and indicate contingencies for any given scenario.


51%45%

4%0%




Somewhat beneficial

Very beneficial

Not very beneficial

Not beneficial

99% agree that real-time monitoring and alerts would be beneficial to operations

Would real-time monitoring and alerts for on-going shipments in your supply chain be beneficial to your operations?

Real-time monitoring and alerts would take the guessing out of the equation and allow rapid response to ensure safe and intact supply to the receiving party.


MorphoSys AG

More and more supply chain professionals will begin to rely on predictive analytics and machine learning to continuously improve and optimise their supply chain. An important part of this is an automatic data feed with good quality data. As the technology advances in this direction, it brings with it the added benefit of improved end-to-end visibility and less wasted product and cost.


Controlant

50% 49%

1% 0%In completing the business case for implementation, the cost for both monitoring and intervening must be considered. In designing and following up on actual incidents, one needs to address what measures could have been taken to avoid the alert or incident from happening.





About Controlant

About TSS

Controlant offers powerful real-time monitoring and traceability solutions for the global cold chain, delivered as an on demand service. Its fully validated cloud and IoT solutions provide end-to-end visibility and risk mitigation across all lanes—air, road, rail, and sea—and through the last-mile. Intelligent data analytics provide enterprises with proactive insights to prevent waste and fuel impactful decision-making and collaboration throughout their entire business ecosystem. More than 200 customers are using Controlant solutions in over 100 countries as a single source of truth to ensure quality and safety, manage compliance, drive operational efficiency, and boost overall profitability and growth.

Learn more at: controlant.com.

TSS’ cloud-based temperature management solution is the product of 20 years’ data and testing; developed with some of the world’s leading pharmaceutical companies, it guarantees the safe delivery of drugs, improves the performance of service providers and allows the delivery process to be streamlined – saving cost and boosting sustainability.

This solution, and the process that supports it, is the core of our work. TSS has created a platform that supports innovation, a platform flexible enough to allow for the inevitable updates to both hardware and software. The performance of technology is, of course, essential but the technology remains a tool for guaranteeing reliable data and ensuring product integrity, rather than an end in itself.

TSS’ intuitive analytics tools harness the power of big data and present it in easy to read dashboards to manage and transform your supply chain. Our team of experts can provide support to interpret data and help identify opportunities to reduce costs in the drug delivery process.

For more information visit tss.se


http://controlant.com

http://controlant.com

https://tss.se

https://tss.se



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Increasing Visibility with Real- Time Data · 2020. 1. 24. · logipharmaeu.wbresearch.com Increasing Visibility with Real-Time Data “If you want to meet your peers in supply chain,